LITIGATION LIABILITY |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Litigation Liability | |
| LITIGATION LIABILITY | NOTE 5 – LITIGATION LIABILITY
On December 12, 2024, the Court of Alaska entered a judgment against the Company. The total judgment recognized in the year ended December 31, 2024 was $618,994. The judgment accrues interest at an annual rate of 8.5% until paid.
During the three months ended March 31, 2026, interest expense of $11,004 was recognized on the outstanding judgment balance, consistent with the amount recognized in the accompanying consolidated statement of operations. The total litigation payable balance as of March 31, 2026 is $682,381, consisting of the $671,377 balance at December 31, 2025 plus Q1 2026 accrued interest of $11,004.
The Company is actively pursuing legal remedies to vacate the judgment on the grounds that the underlying asset purchase agreement was never consummated and no assets were delivered. The full amount of the judgment, together with accrued interest, has been recognized as a litigation payable in the accompanying consolidated balance sheet, as the obligation constitutes a determinable legal liability recorded in accordance with ASC 450 and ASC 855.
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